| The poor state in which the United States economy is | | | | 2. Your home is 100% financed. |
| in has had many far reaching consequences for many | | | | 3. Negative equity, meaning a loan larger than the value |
| people in the US as well as around the globe. | | | | of your property. |
| Part of the economic fallout has been a increasing | | | | 4. A recent death in the family resulting in financial |
| number of home owners that have actually had to | | | | hardship. |
| foreclose on their homes due to the loss of a job as | | | | 5. Unexpected, extensive home repairs resulting in |
| well as a out of control "balloon" mortgage not to | | | | financial problems. |
| mention the drop in the current real estate and | | | | 6. Delayed or late mortgage payments for reasons out |
| property values making it even more difficult to get a | | | | of your control. |
| loan due to the more stringent loan rules. | | | | 7. serious, debilitating illness, affecting your ability to pay |
| To help the situation the US government has started a | | | | your loan. |
| loan modification bailout program with many large | | | | If you find yourself in any one of those positions then |
| lending companies. Now as a second part of their plan | | | | you need to make it known to your lender. From there |
| they are working on helping the average home owner | | | | proof will have to be provided from you in one of |
| by giving them the bailout they need to keep their | | | | several different ways depending on your situation to |
| homes through these tough economic times with the | | | | start the loam modification process. They will then |
| Obama loan modification program. | | | | need and review the following. |
| While there are several parts of this plan to help | | | | 1. A complete financial report showing detailed |
| people out, one of the most significant is the home loan | | | | information about your current situation and how you |
| modification portion. Here is some information you may | | | | and your family are at high risk of losing your home if |
| find beneficial for your own situation. | | | | help is not received via a lowering of your monthly |
| This plan has been designed to help out struggling | | | | mortgage payments. |
| home owners get relief through home loan | | | | 2. Detailed breakdown of your monthly expenses for |
| modification, lowering out of control mortgage rates | | | | your household. Everything from utilities, food costs and |
| and make them easier for the struggling homeowner | | | | even insurance premiums are figured into this number. |
| to keep up with. | | | | 3. A letter explaining the level of financial hardship your |
| There are two basic rules to the new program. To put | | | | family and you are experiencing. This will include |
| it simply you can. | | | | information as to the type of hardship your family is |
| #1 Not be made to pay monthly mortgage payments | | | | experiencing as well as how the loan modification will |
| that use up more then 31% of your total monthly | | | | help you and your family through this rough time. |
| income. this will make the loan affordable for now and | | | | 4. Detailed bank records on any saving accounts, |
| the future so you do not run into further problems. | | | | checking accounts or any other bank statements. |
| #2 Those homeowners who have had their property | | | | 5. Copies of your W2 forms as well as some of your |
| values decreased below what they currently owe and | | | | current payroll stubs as proof of income. |
| have got their loan through Fannie May or Freddie Mac | | | | While this process may take some time for you to go |
| can refinance their home loan or mortgage for the | | | | through the help it can provide you and your family |
| new, lower property value not exceeding 105% of the | | | | with can quite literally keep a roof over your heads. |
| current market value. | | | | The government is more then willing to assist people |
| Now, in order for you to even quality for this form of | | | | through these tough economic times to help the |
| help through the government you need to go through | | | | economy recover more quickly. |
| and actually verify that you are currently experiencing | | | | You need to take the time and put in the effort as |
| one or more of the listed types of hardships given | | | | quickly as possible to get the process moving so that |
| below. They include: | | | | you can get your hands on some much needed |
| 1. The loss of employment. | | | | government assistance and save your home. |